Dzelzceļa līnijas, the national implementing body of Rail Baltica in Latvia, is exploring PPP financing possibilities with the Swiss company SSB Holdings Group. A meeting has been organised in April attended by the chairman of the Board of Rail Baltica national implementing body in Latvia Eiropas Dzelzceļa līnijas, Ēriks Diļevs, Pēteris Celms, the Head of Investment Development at the central project coordinator RB Rail AS, and Guntis Āboltiņš-Āboliņš, CEO of Bererix, the contractor for the Rail Baltica Central Hub in Riga, and representatives of SSB Holdings.
SSB Holdings has international experience in financing both large-scale infrastructure and commercial projects worldwide.
Work is ongoing to develop a PPP financing model aimed at attracting additional funding that could accelerate project implementation and, in the long term, reduce the financial burden on the budgets of Baltic states during the construction of infrastructure. Discussions are currently underway with investors to assess which sections and assets of the Rail Baltica infrastructure would be most suitable for implementation under the PPP model, maximising the benefits of private sector involvement.
According to the vision of the European Commission, the PPP approach is encouraged and supported, as demonstrated by other international infrastructure projects. Initial talks with potential private investors and financiers have yielded positive signals and indicate a strong interest in participating in the Rail Baltica project. Combined with government support, this highlights the clear potential of a PPP strategy within Rail Baltica.
The PPP model will accelerate the development of Rail Baltica and lessen the burden on state budgets. This approach is particularly timely, as it follows the successful funding allocation to the Porto – Lisbon high-speed rail project, which received EUR 813 million from the Connecting Europe Facility (CEF) – the highest amount awarded to any project in this funding round. This slightly exceeds the amount awarded to the second-place Rail Baltica.
Thus, the Porto – Lisbon HSR project serves as a significant precedent for Rail Baltica, demonstrating the viability of combining CEF funding with a PPP structure to address financing gaps in large-scale rail initiatives.
In addition, several other notable European high-speed rail projects have successfully employed the PPP model, including the Lyon – Turin high-speed rail project, which aims to create a new rail link between France and Italy. Its PPP structure has attracted significant private investment, enabling a more efficient development process. Another relevant case study is the Brenner Base Tunnel.
Share on:
